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ARTICLE · 01 MAY 2017

A lesson on costs of judicial proceedings

Courts are hesitant to award costs when a party files a submitting appearance and takes no active role in proceedings.

AustraliaLitigation, Mediation & Arbitration

The recent decision of Midson v Workers Compensation Commission & Ors (No 2) [2017] NSWSC 147 makes it clear that in circumstances where a party files a submitting appearance and takes no active role in proceedings, Courts will be hesitant to award costs against that party, even if the application is successful.

Background

Mr Midson suffered a psychological injury during his employment, due to workplace harassment. He subsequently sustained a severe hand injury, which also impacted his psychological wellbeing and was resolved through a work injury damages payment. He then made a claim for workers' compensation benefits, arising from the harassment. Following this claim, Mr Midson was referred to an approved medical specialist (AMS) who determined that he had a 15% whole person impairment (WPI) arising from the injury, after deducting 1.7% WPI pursuant to s 323 under the Psychiatric Impairment Rating Scale (PIRS)—on the basis that it was difficult to determine the

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